Rhode Island sues Curt Schilling for $75 million over 38 studies fiasco

Former Boston Red Sox pitcher Curt Schilling was sued on Thursday by Rhode Island's economic development agency in connection to the $75 million loan guarantee to his failed video game company, 38 Studios. In addition to Schilling, some former members of the economic development agency are included in the suit.

In 2010, the Economic Development Corp. granted Schilling's company the loan to get it to relocate from Massachusetts to Rhode Island. In June, 38 studios filed for bankruptcy, which leaves the EDC responsible for close to $100 million when interest is factored into the bonds issued by the state on the company's behalf.

In a statement from Gov. Lincoln Chafee, it was explained that the suit was an attempt to recoup some of the state's money and that the filing of the complaint was only the first step in the process.

The suit states that the EDC members who granted the loan were not qualified to value the company or to make legal, lending or economic decisions in relation to a video game company. In addition, it contends that 38 Studios failed to inform the board of risks they were taking that ultimately led to the failure of the company.

Schilling did not return calls for comment, according to ESPN Boston.